Block, Jack Dorsey’s Financial Technology Company, is letting go of nearly 1,000 current employees while also implementing other changes to its business in its second major move in over a year.
Dorsey, who co-founded Twitter before founding the Block in 2009 and previously served as the CEO of Twitter, informed employees of the impending layoffs in an email titled “Small Block,” which was seen by the Guardian. The layoffs will impact over 930 employees, transition almost 200 managers to unmanaged roles, and close nearly 800 open positions.
Block operates payment platform Square, money transfer app CashApp, and music streaming service Tidal.
Dorsey stated in the email that the layoffs and organizational changes were not aimed at specific financial targets, replacing individuals with AI, or changing staffing limits. This reorganization follows a previous one in early 2024, where around 1,000 employees were laid off and Dorsey reduced the workforce to approximately 12,000 employees.
Instead, Dorsey explained that this latest reorganization is intended to raise performance standards, streamline the organization, and promote quicker decision-making. Last year, Dorsey used a similar approach in notifying staff about layoffs, emphasizing the need to “rebuild like a startup.”
In the recent email, Dorsey expressed that “we have been slow to act, and that is not fair to individuals or the company.”
The Block’s stocks have declined by 29% this year. Despite Dorsey taking on more operational responsibilities, concerns have been raised by shareholders about the company’s revenue and profits. Dorsey highlighted in the email that part of his role is to increase the company’s stock value, and the reorganization will enable them to focus and execute effectively towards that goal.
“When we identify a need for action, we must act decisively, and there has been a lack of action,” the CEO stated. “We need to enhance accessibility, transparency, and automation as our industry must evolve quickly to stay ahead of changing trends.”
A spokesperson for the Block did not respond to requests for comments or emails.
Source: www.theguardian.com
